SALES

1. SALES Ch 12 - 15 MARKETING PROMOTIONS

2. Chapter 12 Preparing for the Sale

3. What is Selling? • Providing customers with the products that they want • Personal Selling – any form of direct contact between salesperson and a customer • Two-way communication • Retail Selling – customers come to the store, salesperson should be able to answer any questions • Business to Business (B2B) – inside (manufacturer’s showroom) or outside • Telemarketing – selling over the phone

4. Is it Personal Selling, B2B, Retail or Telemarketing? • Coffee is purchased from Red Diamond Coffee Company by The Blue Cafe • You purchase a Iced Tea in the Blue Café • You come in the Norcross Depot looking for a pink shirt for “blue-out” and the rep helps you • You receive a phone call from your phone provider offering you a new Smart Phone for free • You visit LensCrafters and get help picking out frames for your new eyeglasses

5. Goals of Selling • Goal is to help customers make satisfying buying decisions which create ongoing, profitable relationships • Repeat business is crucial…it is easier and less expensive to keep current customers happy than to generate new customers

6. Consultative Selling • Providing solutions to customers’ problems by finding products that meet their needs • Solve a specific group’s problems • Analysis of customer’s needs combined with product knowledge – need to be trained in feature-benefit selling

7. Feature Benefit Selling • Matching characteristics of a product to customer’s wants and needs • People buy what the products will do for them • Product Features • basic, physical, extended attributes of a good or service, the intended use (ex: size) • Extended product features – warranties, service policies, financing, etc. • Customer Benefits • advantages to customer (ex: travel)

8. Feature-Benefit Chart

9. See Handout • Feature versus Benefit Handout

10. Customer Buying Motives Reasons why you buy: • Rational Motives • Logical or factual • Health, safety, comfort, time, savings, quality, service • Emotional Motives • feelings, beliefs, or attitudes • Social approval, prestige, power, pleasure • Most common reason What’s this ad?

11. Rational or Emotional Motive? • Your first luxury sports car purchase • Workout clothing • A purse that is very popular among your friends • Jeans that are latest rage and everyone has them • You purchase a luxury sports car every two years Successful salespeople figure out customers’ rational and emotional motives in a potential buying situation. They try to suggest the features and benefits of the product that match their motives.

12. Practice Rational or Emotional Selling

13. Customer Decision Making Process • Problem Recognition • Information Search • Evaluation of Alternatives • Purchase • Post Purchase Evaluation

14. Influences on the Consumer Decision Making Process • Personal • Personality • Social Class • Cultural Environment • Reference Groups • Previous experience with the product • How often product is purchased

15. Influences on the Consumer Decision Making Process • Amount of info necessary to make the decision • Perceived risk (how will product function) • Importance of purchase • Time to make the decision

16. Types of Decision Making • Routine Decision Making • Used when little info needed, Low risk • Brand loyalty • Ex: groceries, newspapers • Limited Decision Making • Purchased before but not regularly • Moderate risk • Ex: second car, furniture, appliances, vacation

17. Types of Decision Making • Extensive Decision Making • Little or no previous experience with the product • Greatest amount of involvement and risk • Expensive • Ex: buying a first house

18. Routine, Limited or Extensive Decision? • Family goes on a vacation every summer; they research trips with a travel agent to get information • Buy a meal at a restaurant • Buy a new hair dryer • You move to a new town and need to find a new dentist; you will have a lot of work done • Purchase your first new car ever (had used cars in the past) • Buy a first home

19. A Job in Sales • Is a Job in Sales right for you? • http://careerplanning.about.com/library/quiz/career_quizzes/blsalesrep_quiz.htm

20. Preparation – The Pre-Approach • Product Information – develop product knowledge • Industry Trends – gain insight into the industry • Prospect or lead – a potential customer

21. Pre-Approach Example • A time in which one looks for customers and prepares for a sale • How can you prepare?

22. Pre-Approach Example • Sources and Methods of Prospecting • Employer Leads • Telephone Directories • Trade and Professional Directories • Newspapers • Commercial Lists • Customer Referrals • Endless chain method – asking previous customers for names • Cold Canvassing – selecting people randomly

23. Preparing for the B2B Sale • Needs are usually determined during the pre-approach • If selling to a previous customer… • Analyze past sales records • Review notes • When a new customer… • Does the prospect need this product or service? • Does the prospect have the financial resources to pay? • Does the prospect have the authority to buy?

24. Questions • When are the customers’ needs usually determined in a business-to-business sales situation? • Why would you find out if the person has the authority to purchase?

25. Preparing for the Sale - Retail Selling • Straightening, rearranging, and replenishing the stock • Adjusting price tickets before and after special sales • Learning where stock is located and how much is available • Taking inventory • Arranging displays • General Up-Keep

26. Selling Questions • Why do many stores insist on the employees purchase and wear the company’s merchandise? • How would you find out how to wash or dry clean a garment? • If you are a sales rep for a paper company that sells to schools. You take 3 months off for summer vacation. What percentage of the year is spent in downtime? • Is it ethical for a salesperson to take their customers when they move to a new job?

27. Chapter 13 Initiating the Sale

28. The Sales Process • Step One- Approach the Customer • Step Two- Determine Needs • Step Three- Present the Product • Step Four- Overcome Objections • Step Five- Close the Sale • Step Six- Suggestion Selling • Step Seven- Relationship Building

29. The Approach • Sets the mood for the sale • Begin conversation, establish a relationship, focus on the product • B2B • Set up an appointment in pre-approach • Retail Selling • Service – ask the customer if he/she needs assistance (“How may I help you?”) • Greeting – welcome the customer (“Good morning”) • Merchandise – make a comment about a product in which the customer shows interest (“That shirt is made of a cotton and poly blend so it is machine washable”)

30. Determine Needs • Observing – look for nonverbal communication/body language • Listening – helps you pick up clues to the customer’s needs • Questioning & Engaging – get the customer to talk! • Use open-ended questions • Clarify questions • Don’t ask too many questions • Don’t ask embarrassing questions

31. Chapter 14 Presenting the Product

32. Presenting the Product • Show and Tell • Which products to show? • What price ranges to offer? – if unknown, medium price range • How many products to show? – no more than 3 at a time • What to say? – use layman’s terms except to industrial buyers

33. Presenting the Product • Make the Presentation Come Alive • Displaying and handling the product – treat with respect • Demonstrating – build confidence • Using sales aids – videos, testimonials, etc • Involving the customer & get them physically involved – best way • Hold their attention – if losing their attention, ask them questions

34. Objections and Rejections • Welcome and plan for objections • Concerns, hesitations, doubts, or other reasons a customer has for not making a purchase • Question “Do you carry any other brands?” or • Statement “This doesn’t fit right.” • Common objections • Need, product, source, price, time • Create an objection sheet (lists possible responses)

35. Objections and Rejections • Excuses – insincere reasons for not buying or not seeing the salesperson (“I’m just shopping around.”) • 4-step process for handling objections • Listen • Acknowledge • Restate/paraphrase • Answer

36. Methods of Handling Objections • Substitution – recommend a different product • Boomerang – turn it into a selling point • Question – ask and learn more about objections • Superior Point – acknowledge objections and offset with other features/benefits • Denial – provide proof to refute objection • Demonstration – “seeing is believing” • Third Party - testimonial

37. Handling Objections (Samples) • http://www.youtube.com/watch?v=fiiY1VGfvow • Gym Membership Objections • http://www.youtube.com/watch?v=654Ez9RN3M4 • Don’t Bobble your Sales Objections • http://www.youtube.com/watch?v=dr33Aw4S8N4 • Price objections • http://www.youtube.com/watch?v=1JA7Vue5gOU • Gym Price Objection

38. Chapter 15 Closing the Sale

39. Closing the Sale • Obtaining an agreement to buy from the customer • Timing the Close • Buying signals – readiness to buy • Trial close – initial attempt to close the sale • Rules for Closing • Recognize closing opportunities • Help customers make a decision • Create an ownership mentality • Don’t talk too much and don’t rush a customer

40. Specialized Methods for Closing the Sale • Which Close – encourages a customer to make a decision between two items • Standing Room Only Close – used when a product is in short supply or when the price will be going up in the near future (be honest!); could be seen as a pressure tactic

41. Specialized Methods for Closing the Sale • Direct Close – ask for the sale, buying signals must be strong • Service Close – explains services that overcome obstacles/problems (gift wrapping, return policy, warranties, etc.) • B2B – discuss payment & credit terms, samples • Retail – payment, warranties, etc.

42. Suggestion Selling • Selling additional items that ultimately save time, money or make the original purchase more enjoyable • Cross-selling • Offer Related Merchandise - “Would you like fries with that.” • The most effective method • Up-selling • Recommend Larger Quantities – “Super Size it?” • Special Sales Opportunities • New product or sale - “Coupon Calendar?”

43. Suggestion Selling • Rules • After commitment to buy and from customer’s POV • Make it definite and positive • Show the item • Benefits the salesperson, customer and the company

44. Customer Relationship Marketing/ Management • Strategies businesses use to stay close to their customers • Good customer service • Taking Payment/Taking the Order – be efficient • Departure – reassure buying choices & give special instructions for the product • Follow-Up – follow through on any promises made during the sale (including thank you cards) • Evaluation – questionnaires, ask customers how they were treated by the sales staff

45. Characteristics of Effective Salespeople • Product knowledge • Good communication skills • Good interpersonal skills • Solid technical skills • Goal orientation • Empathy • Honesty • Enthusiasm • Positive attitude • Self-confidence